Residential Real Estate News
U.S. Mortgage Rates Drop to 4 Month Low in March
Residential mortgage demand surges 20% higher than last week
Based on new data from Freddie Mac's latest Primary Mortgage Market Survey, the U.S. 30-year fixed-rate mortgage (FRM) averaged 6.63% as of March 6, 2025.
"As the spring homebuying season gets underway, the 30-year fixed-rate mortgage saw the largest weekly decline since mid-September," said Sam Khater, Freddie Mac's Chief Economist. "The decline in rates increases prospective homebuyers' purchasing power and should provide a strong incentive to make a move. Additionally, this decline in rates is already providing some existing homeowners the opportunity to refinance. In fact, the refinance share of market mortgage applications released this week reached nearly 44%, the highest since mid-December."
Freddie Mac News Facts
- The 30-year FRM averaged 6.63% as of March 6, 2025, down from last week when it averaged 6.76%. A year ago at this time, the 30-year FRM averaged 6.88%.
- The 15-year FRM averaged 5.79%, down from last week when it averaged 5.94%. A year ago at this time, the 15-year FRM averaged 6.22%.
Weekly mortgage demand soared by 20% as interest rates fell to their lowest levels since late last year. According to the Mortgage Bankers Association's seasonally adjusted index, total mortgage application volume rose 20.4% last week compared to the previous week.
